In a landmark deal that will undoubtedly reshape the legal tech landscape, law practice management company Clio has signed a definitive agreement to acquire the AI and legal research company vLex for $1 billion in cash and stock.

The companies say that the acquisition will “establish a new category of intelligent legal technology at the intersection of the business and practice of law, empowering legal professionals to seamlessly manage, research, and execute legal work within a unified system.”

Since 2022, vLex has been owned by Oakley Capital, a major European private equity investor.

vLex was founded in Barcelona in 2000 by brothers Lluís Faus, its CEO, and Angel Faus, its CTO, and developed into a major platform for global legal research. n 2019, vLex acquired Justis Publishing Ltd., a 33-year-old UK legal publisher with customers in more than 40 countries, and in 2023, vLex acquired Fastcase, the U.S. legal research company, along with its Docket Alarm database of litigation data.

More recently, vLex has become a leading developer of generative AI tools for legal professionals through its Vincent AI, which I described last year as the most capable generative AI assistant in the legal market — which was before its release this year of even more-advanced capabilities.

Meanwhile, Clio has been rapidly expanding its law practice management products across all sectors of the legal market, particularly in the wake of its record-setting $900 million raise last July. Originally focused on smaller law firms, Clio has been expanding up-market, and in March it acquired ShareDo, a U.K. company that provides cloud-based enterprise case and matter management for large firms. 

Jack Newton, Clio’s founder and CEO, says today’s acquisition is “a watershed moment for Clio and the broader legal profession.”

“For 17 years, we’ve built the foundational platform that enables law firms to operate at their highest potential,” Newton said. “With vLex, we’re building on that foundation with technology that understands the substance of the law. By bringing together the business and practice of law in a unified platform, we’re revolutionizing every aspect of legal work.

“This sets the stage for a future powered by agentic AI, and marks the establishment of a new industry category—one that will empower legal professionals to serve clients with unprecedented insight and precision.”

In an announcement of the deal, Clio said, “This is the most significant acquisition in Clio’s history, both in scale and strategic impact.”

That is certainly not an understatement. For one, the dollar amount of the deal is huge. The only other billion-dollar acquisition I can think of in legal tech was Reveal’s double acquisition in 2023 of Logikcull and IPRO.

This also makes vLex one of the few Spanish technology companies ever to achieve unicorn status, according to one source.

But then there are numerous possibilities for how these companies come together and what it means for the legal market:

  • Clio can now create a unified end-to-end platform that effectively handles almost everything relating to running a law office and practicing law.
  • This will accelerate Clio’s ability to deploy generative AI not just across its platforms, but also across jurisdictions, since Vincent AI has multi-language, multi-jurisdictional capabilities.
  • This will likely also accelerate its development of agentic AI capabilities and advanced workflows for legal professionals.
  • This will help accelerate Clio’s expansion both globally and into larger firm markets.

“This signals the onset of a transformative era in the legal industry, unlike anything we’ve seen before,” vLex CEO Lluís Faus said in a statement. “Together with Clio, we have a bold vision for the future that empowers legal professionals to go beyond traditional research and operational silos, harnessing deeper intelligence and broader impact.

“With the most comprehensive global legal library and firm insights, Clio and vLex are uniquely positioned to reshape the mechanics of legal work and redefine the trajectory of the profession.”

Stay tuned, as I hope to speak to Jack Newton later today for more details.

Photo of Bob Ambrogi Bob Ambrogi

Bob is a lawyer, veteran legal journalist, and award-winning blogger and podcaster. In 2011, he was named to the inaugural Fastcase 50, honoring “the law’s smartest, most courageous innovators, techies, visionaries and leaders.” Earlier in his career, he was editor-in-chief of several legal publications, including The National Law Journal, and editorial director of ALM’s Litigation Services Division.